November 22, 2005

TAKE A CURTAIN CALL, MAESTRO:

Fed Reassurance Rallies Markets (Jerry Knight, November 22, 2005, Washington Post)

The Federal Reserve gave Wall Street a leg-up today, boosting the stock market to new highs for the year by acknowledging that interest rates won't keep going up forever.

In discussions preceding their last decision to raise interest rates, Fed officials said that "before long" they won't need to keep hiking rates, minutes of that meeting revealed.


What better way to go out than not causing a third unnecessary slowdown out of lunatic fear of inflation? The '70s are finally over and the next Chairman's adult life has coincided with deflation.

Posted by Orrin Judd at November 22, 2005 9:12 PM
Comments

That deflationary trend won't hold, as nations try to inflate their way out of their labor shortage/retiree problems.

Posted by: Michael Herdegen [TypeKey Profile Page] at November 23, 2005 5:24 AM

It'll hold here. Their imploding economies won't drive prices up, but down and labor costs will drop to nothing.

Posted by: oj at November 23, 2005 8:15 AM

Mr. oj is correct. It will hold here. He also is correct that '70s are finally over (although Jimmy Carter still breathes, dangerous like bear which drink case of potato vodka.) Mr. AL shall return thankfully to original love (saxophone) and perhaps devote himself to writing sequel to Atlas Shrugged (working title, AL HUNCHED) as way to bitch about successor's recklessness in the face of "impending inflationary doom." Meanwhile, price of oil is dropping through polished marble floor, Pentagon breezily announces three combat brigade troop reduction in Iraq for early 2006, and Circuit City sells 42-inch Samsung plasma television for $2,700 (Uncle Milty just installed his in ceiling above bed.) Uncle Milty will to keep waiting on his mortgage re-fi, while smoking Monte Christos and enjoying broken-record chorus of mortage brokers singing, "Well, rates *are* goin' up, you know ...") America is great country. Greatest in history of world. And Uncle Milty knows history of world.

Posted by: Uncle Milty at November 23, 2005 10:50 AM

Uncle Milty:

Yeah, but are price of Blahniks go up?

Posted by: ratbert at November 23, 2005 3:40 PM

Meanwhile, price of oil is dropping through polished marble floor

Which reality are you guys tuned in to? Last I checked it was $58, which is higher than it has ever been prior to June of this year.

Posted by: Robert Duquette at November 24, 2005 4:43 PM
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